ARTICLE · 17 SEPTEMBER 2025

Inheritance Tax Initiative I Update August 2025

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The introduction of an inheritance and gift tax at the federal level would also affect the tax base of the cantons.

SwitzerlandTax

Sathees Sitsabesan

In our article from autumn 2024, we already presented the key points of the inheritance tax initiative. Since then, there have been significant new developments. The Federal Council has officially recommended rejecting the federal popular initiative 'For a social climate policy – financed fairly through taxation (Initiative for the Future)' and published its message on this on 13 December 2024. The initiative will be put to a referendum on 30 November 2025.

Federal Council recommends rejection

The Federal Council rejects the initiative, particularly for economic, fiscal, institutional and climate policy reasons.

Implementing the initiative would significantly reduce Switzerland's attractiveness as a place of residence for wealthy individuals. According to an expert opinion commissioned by the federal government, 77% to 93% of the potential tax base, comprising income taxes of municipalities, cantons, and the federal government, as well as wealth taxes of

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